By Juzel L. Danganan
MANILA, April 20 (PNA) — Philex Petroleum Corporation, the mother-company of Forum Energy Plc., is considering a buy-back transaction, which will allow their shareholders to earn 20 pence per each share.
”Philex has indicated to the Company that, were such an offer to be made, Philex would offer minority shareholders cash consideration of 20 pence per Share,” Philex said in a disclosure with the Philippine Stock Exchange (PSE) Monday.
Forum said it has been talking with Philex Petroleum Corporation about the possibility of offering minority shareholders to buy their shares for cash.
But, Forum said Philex is still considering the offer and there are no guarantees it will agree.
It added the proposed cancellation of ordinary share offers was due to the disputed Service Contract 72 or Recto Bank going into Force Majeure.
London-listed Forum noted it will still seek the approval of shareholders for the ordinary share offer cancellations during their Annual General Meeting (AGM) in June.
It further said it could not implement a tender offer for its shares due to its current negative reserves.
Forum has been exploring options for minority stockholders to trade out their shares, before the cancellation takes effect.
Philex disclosed in March that all exploration works at Service Contract 72 is suspended, effective December 15, 2014, until the DOE gives the signal to start drilling.
The project was already at the second sub-phase.
The Energy Department formerly asked Philex to stop operations in the Recto Bank, to not have a case for disqualification on the country’s territorial claim in the area for proceedings at the United Nations.
Forum previously scheduled to conduct the seismic survey on April or May 2015, with the appraisal of drilling scheduled next year.
Philex Petroleum Corporation owns 60.49 percent of Forum Energy, a UK-based upstream oil and gas company.
Meanwhile, Forum Energy holds a 70-percent stake in SC 72, with the remaining share held by Monte Oro Resources and Energy Inc. (PNA)